Following the McLaren Formula E Team’s exit from the ABB FIA Formula E World Championship at the end of Season 11, the FIA confirms that its Cost Cap Administration has now completed the review of the Reporting Documentation supplied by the McLaren Formula E Team for the 2024-2025 ABB FIA Formula E World Championship as provided for by the FIA Formula E Financial Regulations. 

The review of the Reporting Documentation submitted has been an intensive and thorough process, and the competitor gave its full support in providing all the required information to assess its financial situation during this reporting period of the Financial Regulations. 

McLaren Formula E Team voluntarily notified the Cost Cap Administration of a minor overspend breach, of 4.54 % of the Cost Cap, prior to any formal investigation. The Cost Cap Administration recognises that the team has acted cooperatively and in full transparency throughout the process, that the overspend primarily arises from costs associated with the orderly wind-down of the team following the decision to exit the Championship at the conclusion of Season 11, and relates principally to operational matters associated with that process. There is no accusation or evidence of aggravating factors or that the team has sought at any time to act in bad faith.  

In these circumstances, the Cost Cap Administration offered to McLaren Formula E Team an ABA to resolve this matter. That offer was accepted by the Competitor. 

An Accepted Breach Agreement (“ABA”) dated 1st June 2026 was therefore entered into by and between the Cost Cap Administration and McLaren Formula E Team pursuant to Article 8.19 of the FE Team Financial Regulations (“Financial Regulations”). Please find here a link to a summary of the terms of the ABA as provided for by Article 8.23 of the Financial Regulations.

Notes to Editors 
 
The Financial Regulations for Formula E Teams were introduced in the ABB FIA Formula E World Championship from Season 9 (2022-23). The intention of the Financial Regulations for Formula E Teams is to limit spending in the Championship to ensure the long-term viability of the Championship and encourage convergence in performance between Competitors, thus creating more exciting racing. 
 
At the same time, the Financial Regulations for Manufacturers were introduced to regulate cost of development and supply of the manufacturers perimeter. 
  
The Financial Regulations are detailed, reflecting the complexity of the sport as a whole. The process whereby the submissions of the Formula E Teams and Manufacturers are then reviewed by the CCA requires a significant amount of work, which has been carried out within the timeframe anticipated by the FIA. This is analogous to the timeframe seen in other major sporting competitions. 
 
The CCA is responsible for administering and monitoring compliance with the Financial Regulations, investigating instances of suspected non-compliance with the Financial Regulations through the review process, including by launching full investigations if it considers this warranted, and taking appropriate enforcement action in respect of any alleged breaches of the Financial Regulations. 
 
The CCA has several options available to it when dealing with an alleged breach of the Financial Regulations. It can enter, when deemed appropriate, into a settlement referred to as an Accepted Breach Agreement with the FE Team or Manufacturer concerned in case of a Procedural Breach or Minor Overspend Breach, or, if no agreement can be reached or the CCA considers it more appropriate, it can refer the case to the Cost Cap Adjudication Panel. In the event of an alleged Major Overspend Breach the CCA must refer the case to the Cost Cap Adjudication Panel. 
 
The Cost Cap Adjudication Panel comprises a panel of 12 judges elected by the FIA General Assembly in accordance with the FIA Statutes. 
 
For both Formula E Teams and Manufacturers, a Minor Overspend Breach (<5% of the Cost Cap) can result in Financial Penalties and/or Minor Sporting Penalties. A Material Overspend Breach (>5% of the Cost Cap), if confirmed before the Cost Cap Adjudication Panel, will result in a mandatory Manufacturer's Championship points deduction and can result in Financial Penalties and/or Material Sporting Penalties. 

Click here to read the Financial Regulations for Formula E Teams.
Click here to read the Financial Regulations for Formula E Manufacturers.